Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — FY2022-23 Earnings Presentation
44 slides from Elior Group Sa's earnings presentation, December 2023
Slide 1: 2022-2023 Full-Year Results
2022-2023 Full-Year Results 1
Slide 2: Disclaimer
2022-2023 FULL-YEAR RESULTS eliorsroup © Disclaimer This document was prepared by Elior Group for the sole purpose of this presentation. This presentation includes only summary information and does not purport to be comprehensive. The information contained in this dooument has not been independently
Slide 3: Agenda
01 02 03 04 05 Introduction Financial Results Business Review Outlook & Conclusion Q&A eliorsroup ©
Slide 4: Introduction
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Slide 5: FY2022-23 key highlights
FY2022-23 key highlights +11.2% 1.1% €-20m +10% 1.0% €27m 5
Slide 6: Financial Results
2022-2023 FULL-YEAR RESULTS Cy ") ae = Financial R
Slide 7: Strong organic growth boosted by DMS acquisition
Strong organic growth boosted by DMS acquisition +772 (+17,3%) 5,223 7 267 498 447 4,451 8 -188 +11.2% +6.0% +0.1% FY 2022 Organic Scope FX FY 2023 Preferred DMS Other Revenue Growth Revenue Meals 7
Slide 8: All organic growth levers contributing strongly
All organic growth levers contributing strongly +498 (+11.2%) 92.0% -285 429 -70 4,949 78 201 93.6% 4,451 145 +3.3% +4.5% +1.8% +9.6% -6.4% -1.6% FY 2022 Covid Price Other L4L Openings Closings Voluntary FY 2023 93.2% Reported recovery increases drivers exits Organic revenue revenue Like-for-like gr
Slide 9: Elior Group operationally profitable again
Elior Group operationally profitable again 59 +€107m +220bps 1.1% -1,1% -48 FY 2022 FY 2023 FY 2022 FY 2023 Adj. EBITA Adj. EBITA margin margin 9
Slide 10: All profitability improvement levers at play
All profitability improvement levers at play 59 21 -3 42 50 -48 2 7 51 -264 201 FY 2022 Inflation Price Volumes Voluntary Net Efficiencies Preferred Other scope FX & other FY 2023 Adj. EBITA increases exits development & synergies Meals exit incl. DMS Adj. EBITA 10
Slide 11: Group net loss reduction despite higher financial charges
Group net loss reduction despite higher financial charges Simplified income statement (in €m) FY 2022-23 FY 2021-22 YoY change Revenue 5,223 4,451 772 Adjusted EBITA 59 -48 107 Adjusted EBITA margin 1.1% -1.1% +220bps Share based compensation (6) (3) (3) Net amort. of intangible assets recognized on
Slide 12: Near-breakeven FCF excl. temporary working capital movement
Near-breakeven FCF excl. temporary working capital movement 212 -77 -77 -66 -40 -20 38 -9 -1 -58 FY 2023 Capex IFRS16 lease Change in op. Non-recurring Tax paid Other FY 2023 Reversable Normalized Adj. EBITDA payments working capital cash items cash items FCF working cap. FCF add-back 12
Slide 13: Strong year-on-year EBITDA improvement bringing normalized FCF close to breakeven
Strong year-on-year EBITDA improvement bringing normalized FCF close to breakeven -13 -20 38 -32 10 -58 101 -124 FY 2022 Adjusted CAPEX Change in op. Non-recurring FY 2023 Reversable Normalized FCF EBITDA working capital & tax paid FCF working cap. FCF add-back 13
Slide 14: Temporary working cap. movement weighing on net debt
Temporary working cap. movement weighing on net debt -1,217 -41 -58 -66 19 -21 38 -1,355 -9 -1,393 Sep 30, 2022 DMS opening FCF Interests paid Change in Net FX & other Sep 30, 2023 Reversable Normalized Net debt net debt & financial fees IFRS 16 debt acquisitions Net debt working cap. net debt add-b
Slide 15: Deleveraging already well underway
Deleveraging already well underway covenant holiday 7.5 8.3 7.1 6.0 5.25 4.5 5.4 30/09/2022 31/03/2023 30/09/2023 (*) 31/03/2024 31/09/2024 15
Slide 16: Adequate liquidity
Adequate liquidity 47 -58 399 8 -66 -21 313 4 Sep 30, 2022 DMS opening FCF Cash from on- Interests paid Net acquisitions FX & other Sep 30, 2023 Liquidity liquidity balance sheet & financial fees Liquidity securitization 16
Slide 17: Business Review
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Slide 18: Context is improving as food inflation is decelerating
Context is improving as food inflation is decelerating France US UK Spain FY 22 Q1 23 Q2 23 Q3 23 Q4 23 18
Slide 19: Top priority: deleverage by restoring FCF generation
Top priority: deleverage by restoring FCF generation through continued efforts on all profitability levers 19
Slide 20: Maintaining revenue price increases momentum
Maintaining revenue price increases momentum 312 173 +6.3% 139 79 FY22 FY23 Cumulative 20
Slide 21: Voluntary contract exits amplifying profitability improvement from net development
Voluntary contract exits amplifying profitability improvement from net development -70 144 108 108 74 +3.0% +3.0% +3.2% -1.6% +1.6% 7 9 5 5 2 4.6% 4.6% 4.9% -2.9% 12.1% Net Vol. Net-net Net Vol. Net-net dev. exits total dev. exits total 21
Slide 22: Sustaining wide-ranging operating cost optimization
Sustaining wide-ranging operating cost optimization €50m €42m €50m €50m Procurement savings France incl. Corporate Operating efficiencies Other countries SG&A 22
Slide 23: Near-doubling of synergies target thanks to swift DMS integration
Near-doubling of synergies target thanks to swift DMS integration and deeper/wider restructuring • 56 • • 44 • 30 18 • 27 • 12 12 • FY26E Target Annualized FY26E Target in Dec 22 at 30/09/2023 in Nov 23 Development synergies Cost synergies 23
Slide 24: Normalized adj. EBITA margin: a sound base for further uplift
Normalized adj. EBITA margin: a sound base for further uplift 40 30 10 1.9% 1.1% FY23 DMS Synergies annualization Ramp-up FY23 adj. EBITA pro forma at 30/09/2023 issues normalized margin add-back resolution margin 24
Slide 25: Outlook & Conclusion
2022-2023 FULL-YEAR RESULTS N a eliorcro
Slide 26: Outlook for FY2023-2024 and beyond
Outlook for FY2023-2024 and beyond 26
Slide 27: Other financial considerations for FY2023-24
Other financial considerations for FY2023-24 - - - 27
Slide 28: Conclusion
2022-2023 FULL-YEAR RESULTS Conclusion eliorsroup © New leadership with proven turnaround track-record in the business services sector... ... and a significant vested interest in the long-term success of Elior as a stable 48.3% shareholder Strategic positionning reinforced by highly synergetic DMS a
Slide 29: Q&A
2022-2023 FULL-YEAR RESULTS i eliorcroup @
Slide 30: Appendices
2022-2023 FULL-YEAR RESULTS 30 eliorcroup eC
Slide 31: Reported revenue by geographic zone
Reported revenue by geographic zone 2022-23 H1 H2 FY 2021-22 H1 H2 FY France 1 112 1 428 2 540 France 992 966 1 958 Europe (excl. France) 719 704 1 423 Europe (excl. France) 646 591 1 237 Rest of the World 647 613 1 260 Rest of the World 601 655 1 256 TOTAL GROUP 2 478 2745 5 223 TOTAL GROUP 2 239 2
Slide 32: Pro forma revenue by operating segment
Pro forma revenue by operating segment Pro forma 2022-23 (*) H1 H2 FY Pro forma 2021-22 (*) H1 H2 FY Contract catering 2,169 1,982 4,151 Contract catering 1,818 1,842 3,660 Multiservices 789 804 1,593 Multiservices 756 774 1,530 Sub-total 2,958 2,786 5,744 Sub-total 2,574 2,616 5,190 Corporate & Oth
Slide 33: Pro forma adjusted EBITA by operating segment
Pro forma adjusted EBITA by operating segment Pro forma 2022-23 (*) H1 H2 FY Pro forma 2021-22 (*) H1 H2 FY Contract catering 49 -2 47 Contract catering 12 -14 -2 Multiservices 9 29 38 Multiservices 19 30 49 Sub-total 58 27 85 Sub-total 31 16 47 Corporate & Other -9 -8 -17 Corporate & Other -12 -10
Slide 34: Detailed income tax
Detailed income tax (in €m) FY 2022-23 FY 2021-22 YoY change Tax on added value (CVAE) (7) (9) +2 Current tax (4) (6) +2 Deferred tax 40 (21) +61 Total income tax 29 (36) +65 34
Slide 35: Detailed change in working capital
Detailed change in working capital -8 -8 -28 -64 38 8 -4 4 -2 -66 Inventories Receivables Payables Social Tax Other Net change in Reversable Normalized working cap. working cap. change in add-back working cap. 35
Slide 36: Elior Group overview (1/2)
Elior Group overview (1/2) 5.8 c.133,000 9 36
Slide 37: Elior Group overview (2/2)
Elior Group overview (2/2) 37
Slide 38: New governance ensuring balance in the long term
New governance ensuring balance in the long term 38
Slide 39: New Board of Directors
eliorsroup © New Board of Directors Adapted to the new shareholder base and safeguarding the interests of all stakeholders 2022-2023 FULL-YEAR RESULTS independent directors Gilles Auffret lead independent director FSP represented by Virginie Duperat-Vergne EMESA represented by nés Cuatrecasas Sara B
Slide 40: Extra-financial performance 2022-2023
Extra-financial performance 2022-2023 Contribute to reducing Deliver sustainable offer Reducing the Reduce the impact Improve actions the carbon footprint purchaising impact of operations commited • -0,25% kgCO2 / meal • +120% turnover eligible for • 24% sustainable product • -22,5% food waste • 27%
Slide 41: New CSR strategy according to the new CSRD regulation
New CSR strategy according to the new CSRD regulation 2023 November December CSR Committee Board of directors CSR operational committee Bi-annual - Operations - CSR 2024 - Purchasing - Legal February April May July - Communication - Human resources Monthly entertainment Country & activities CSR Mana
Slide 42: Alternative performance indicators
Alternative performance indicators • • • • • • • 42
Slide 43: Financial calendar for fiscal year 2023-24
Financial calendar for fiscal year 2023-24 43
Slide 44: Thank you!
2022-2023 FULL-YEAR RESULTS eliorcroup eC